As the world adjusts to the “new norm”, property investors who want to outperform the market will need to adapt to new consumer demands, a property expert has said.
According to Pure Property’s founder and director, Paul Glossop, three key trends have emerged in the property market during the COVID-19 pandemic, which are likely to continue after the health crisis.
The property investor highlighted the growing trend of Australian workers using their home as an office, with COVID-19 forcing Australians to adapt to working from home.
“Before COVID-19, working from home was, for most, a one or two-day-a-week occurrence at best and done at an individual employee level,” Mr Glossop said.
“The recent events have seen this change, and it is now generally commonplace to work full-time from home.”
He explained that this means new home owners will be focused on extra rooms and extra space as they continue to use their home as an office.
The director also said consumer preferences have changed, with lifestyle locations becoming a premium as workers spend less time in the office.
“More and more people are thinking about where they want to live in a post-COVID-19 world that made areas with connectivity to social hubs, transport, schooling and, above all, space (inside and out) more appealing than ever,” Mr Glossop explained.
“This will lead to a continued push to value above proximity to office towers.”
Finally, Mr Glossop believes incentives for first home buyers to get into the market are likely to be accommodating for the foreseeable future.
“With incentives for first home buyers at record highs and the proposed abolition of stamp duty in many states, first home buyers will be out in force, upgraders will also become far more active, seeking larger houses with more amenities (pools, extra rooms for work-from-home options, cafes, beaches waterway access),” Mr Glossop concluded.
“Investors will also make a comeback towards the second half of the year as the responsible lending laws are proposed to be amended by April 2021.”